Buffett Cuts Bonds After Saying They Need a Warning Label

Warren Buffett's Bet on America

Warren Buffett reduced Berkshire Hathaway Inc.’s bond portfolio for a sixth straight year in 2015. The holdings were about $25 billion on an amortized cost basis as of Dec. 31, compared with almost $35 billion at the end of 2009, according to the company’s annual report Saturday. Buffett has communicated his shifting views on fixed-income holdings in his annual letters, writing in 2010 that he added corporate debt the prior year because of high yields in a market that was “raining gold.” By 2012, he lamented that low yields weren’t compensating investors for inflation risk and that bonds “should come with a warning label.”

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